The Wholesale Forums

[xaro]

Hi everybody,

I am new to this forum which has great info. I browsed around for some time but did not find clear answers to my questions, so here it goes.

I am studying the possibilities of starting an online business selling sport equipment (mountain bike parts, snowboarding etc).

1. When you just start up and have nothing to show for, what is the best way to contact distributors?

2. Is it possible that in some industries, distribution networks are reluctant to work with e shops? (To protect their brick and mortar retailers accounts or for whatever reason I do not know)

3. In such industries, assuming there is a difficulty to get in, what is the best time to get in touch with the big distributors in the start up process?

Therefore, when asking for an account with distributors, what is the best approach? Is it best to be open or say the minimum? Is it easier to get the relations if you already have something established? (why should it be ... )

Thanks

[fineconcept]

I am new to this forum which has great info. I browsed around for some time but did not find clear answers to my questions, so here it goes.

I am studying the possibilities of starting an online business selling sport equipment (mountain bike parts, snowboarding etc).

1. When you just start up and have nothing to show for, what is the best way to contact distributors?

2. Is it possible that in some industries, distribution networks are reluctant to work with e shops? (To protect their brick and mortar retailers accounts or for whatever reason I do not know)

3. In such industries, assuming there is a difficulty to get in, what is the best time to get in touch with the big distributors in the start up process?

Therefore, when asking for an account with distributors, what is the best approach? Is it best to be open or say the minimum? Is it easier to get the relations if you already have something established? (why should it be ... )

okay, first you got to have a company (pref ltd) they wont really be keen unless you have a company.
Contact distributors on things like ********, chat with lots of them, that will give you a feel for the kind of questins they will ask.
Yes, you may find it harder to buy products to sell online- i guess you need to buy from dropshippers or find wholesellers who will sell you a smaller volume initially...
Dont bother about asking for an account to start with, just ask to BUY some product, they wont give you an account (implies some kind of credit) unless you have a history with them or your company big well established

[xaro]

Thanks fineconcept, but I think the situation is more subtle.

First, in the bike industry (must be true in other areas dealing with specialized sport equipment), there are only a handful of distributors you cannot avoid to work with.

Second, what happens usually is that they do not sell 'quantity' to retailers. If a retailer misses one part a customer needs, the retailer orders it. So typically a retailer will place an order on the parts he needs in shop with a quantity of 1 to 3. Quantity of 1 for special customer request...

So I know I can start with a tiny niche at the beginning, buying from exotic suppliers who do not care, but if at one point I want a complete product line (or even 20% complete) I will have to deal with such distributors.

As an example, I saw that one distributor is asking for a picture of the physical shop to apply.

Could somebody tell me why distributors are reluctant to sell to e commerces? And why having an established business might make it easier? I mean why do they care, if you pay cash, that's business for them...

[fineconcept]

okay, well it does sound you know your niche well so thats great and the best way to start.
Although if you want bike gloves, helmets etc I still guess you need too buy in bulk... but anyway, thats a minor point.

I guess that a distributor will be along to answer why they would not sell to you!
My feelings are that if you are an internet start up then the distributor would be concerned about
- maintaining quality if their brand name: perhaps you will sell the items TOO cheaply or provide a poorer returns service than a physical shop. Surely some 15 yr old living with their mum with no overheads, can sell items cheaply from their bedroom, at a very cheap price- but are they going to still be around in 18 months...
- dealing with you by phone/fax/ bank transfers/ serving legal forms if you are not a registered Ltd company
- cash is only a small part of what QUALITY distributers care about from my experience...

[xaro]

I understand your points.

Of course you are right, the best is to ask the distributors directly and this is what I am going to do. I just wanted to hear what people had to say on this forum first.

Thanks for the replies and I might get back to this thread if I have more info.